Third-party billing system and method

ABSTRACT

A third-party billing system and method permits consumers to conduct e-commerce transactions (including microtransactions) securely and anonymously by providing billing and personal information to the third party billing system rather than to merchants. A consumer initiates a transaction by placing an order for a product. The consumer then authorizes the transaction by transmitting an authorization code to a billing computer. The authorization code identifies the consumer billing account to which the transaction is to be charged. The authorization code can also authenticate the consumer through use of a PIN. Multiple consumers can charge transactions to one billing account, in which case each consumer can be assigned a different PIN with restrictions that limit that consumer&#39;s use of the account. The billing computer then verifies the authorization code and transmits an approval code to the merchant computer. To fulfill the transaction, the consumer sends a fulfillment request and a consumer identifier to the merchant computer. The consumer identifier can be anonymous, meaning that it identifies only the destination to which the product is to be delivered. If that consumer identifier matches a second consumer identifier that the consumer sends to the billing computer, the merchant computer then delivers the product to the consumer. The billing computer can charge the transaction to the consumer billing account directly, or it can aggregate the transaction for later charging of an aggregated total. The billing computer can also obtain a charge pre-authorization to ensure that the billing account can accommodate the charging of aggregated transactions.

FIELD OF THE INVENTION

The present invention relates to electronic commerce systems andmethods, and more specifically, to a third-party billing system andmethod that allows consumers to purchase products and services fromonline merchants by providing billing information to the third partybilling system rather than to merchants.

BACKGROUND OF THE INVENTION

Consumers are ordering products and services over computer networks suchas the Internet in increasing numbers. FIG. 1 shows a typical electroniccommerce (e-commerce) system used to conduct online transactions.Consumer 104 usually accesses a computer network such as the Internetthrough a browser program, and searches through product descriptionslocated at a merchant's world wide web site on merchant computer 108.After consumer 104 selects a product and places an order for it withmerchant computer 108, consumer 104 typically sends billing information(such as a credit card number), as well as additional personalinformation (such as a postal address, a telephone number, or an e-mailaddress), to merchant computer 108. Merchant computer 108 then requestsauthorization from consumer billing authority 140 (e.g., a credit cardpayment processor) to charge the transaction to a consumer billingaccount identified by the billing information provided by consumer 104.After receiving authorization from consumer billing authority 140,merchant computer 108 notifies consumer 104 that the transaction hasbeen authorized, and delivers the product to consumer 104.

There are numerous drawbacks associated with such prior art e-commercesystems. For example, consumers must provide their billing informationto all the merchants from whom they wish to purchase products orservices. This poses a security risk to consumers, since unscrupulousmerchants can use that information to conduct unauthorized transactions.Moreover, consumers must also provide their personal information tomerchants, who can use that identifying information to flood consumerswith unsolicited mail, telephone calls, and advertisements. Merchantscan also sell consumers' personal information, as well as informationabout the products or services purchased by specific consumers, toadvertising companies or to companies that can compile detailedhistories of the spending and purchasing habits of consumers. Manypotential consumers are reluctant to engage in online transactions forfear that in doing so they can compromise not only the security of theirbilling accounts, but also their own privacy.

Merchants are also inconvenienced by prior art e-commerce systemsbecause they must implement their own billing solution, which can becostly, time consuming, and technically difficult to integrate intotheir web site. In addition, merchants must also build extra securitymechanisms into their web site in order to prevent hackers from breakinginto their system and gaining access to databases with consumer accountand billing information.

Another drawback of prior art e-commerce systems is that they are notset up to handle “microtransactions.” Microtransactions are transactionsthat involve small amounts of money, such as two dollars or less. Therelatively high fees associated with processing such transactionsprohibit merchants from making microtransactions available to consumers.This is an especially significant shortcoming on the Internet becauseconsumers are much more likely to buy small-value items (such as a $0.50news article, picture, or song) than large-value items (such as a $20newspaper subscription or album).

Accordingly, there exists a need for an electronic commerce system andmethod that allows consumers to conduct transactions securely,confidentially, and without the aforementioned problems andinconveniences.

SUMMARY OF THE INVENTION

The present invention is directed to a system and method for conductingtransactions between a consumer, a merchant computer, and a billingcomputer that are connected together by a computer network. In a typicaltransaction, the consumer wishes to purchase a product or service fromthe merchant computer. The product or service can comprise digitalcontent. Non-limiting examples of digital products include onlinepublications, digital images, computer software, search results obtainedfrom searching electronic databases, and any other information thatmerchants can provide to consumers for a fee. The consumer intends topay for the product or service by charging the transaction to a consumerbilling account, preferably one that has been pre-established (e.g., anexisting credit card). Examples of billing accounts include credit cardaccounts, debit card accounts, smart card accounts, checking accounts,and any account that allows consumers to pay for a purchase by merelyproviding an identification of the account to a merchant or other party.The system and method of the present invention allow consumers toconduct such transactions without disclosing the identity of a billingaccount (or other information related to the account) to merchants.Instead, consumers provide such billing information to a trustedthird-party billing system.

The advantages of the present invention are provided by a method ofconducting transactions that includes the steps of initiating atransaction, authorizing the transaction by having the consumer transmitan authorization code to the billing computer, and fulfilling thetransaction.

The transaction can be initiated by transmitting an order for a productor service to a merchant computer. The merchant computer can transmitinformation relating to the order to a billing computer, which canrespond by returning a transaction identification code. The merchantcomputer can transmit the transaction identification code to theconsumer, and direct the consumer to contact the billing computer inorder to authorize the transaction. In an alternative embodiment, thetransaction can be predefined, and the merchant computer can return atransaction identification code to the consumer without first contactingthe billing computer. In yet another embodiment, the consumer caninitiate a predefined transaction by placing an order directly with thebilling computer.

The transaction is then authorized by the consumer. The billing computercan transmit a description of the transaction to the consumer, so as toverify the details of the transaction. Assuming the consumer wishes toauthorize the transaction, the consumer transmits an authorization codeto the billing computer. The authorization code contains billinginformation that identifies the consumer billing account to which theconsumer wishes to charge the transaction. The authorization code canalso contain authentication information such as a password or a PersonalIdentification Number (PIN), which adds a layer of security to theconsumer's billing account. In an alternative embodiment in whichmultiple consumers are permitted to charge transactions to the samebilling account, each consumer is issued a separate PIN. Each PIN can beassociated with restrictions that limit the corresponding consumer's useof the billing account.

After the consumer authorizes the transaction, the billing computerdetermines whether to approve the transaction. The billing computermakes such a determination by considering the authorization codeprovided by the consumer. The billing computer can also considerauthentication information provided by the consumer, as well as otherinformation about the transaction. The billing computer can alsoconsider the result of an authorization request placed with a consumerbilling authority before approving the transaction. After the billingcomputer makes its approval determination, it transmits an approval codeto the merchant computer, indicating whether or not it has approved thetransaction.

Assuming the transaction is approved by the billing computer, it is thenfulfilled. Transaction fulfillment can be as simple as delivery of theproduct or service to the consumer. The merchant computer canadditionally send an acknowledgment to the billing computer.

In an alternative embodiment, the consumer transmits a fulfillmentrequest and a consumer identifier (sufficient to associate the consumerwith the transaction but not necessarily to reveal the true identity ofthe consumer) to the merchant computer. The consumer also transmits theconsumer identifier to the billing computer, possibly as part of theauthorization code. The billing computer forwards its copy of theconsumer identifier to the merchant computer. If the consumer identifierreceived from the consumer matches the consumer identifier received fromthe billing computer, the merchant computer then delivers the product tothe consumer at the destination specified by the consumer identifier.

In another embodiment, the consumer transmits a fulfillment request anda consumer identifier to the merchant computer. The merchant computerthen transmits the consumer identifier to the billing computer, alongwith a fulfillment approval request. The consumer also transmits aconsumer identifier to the billing computer, possibly as part of theauthorization code. If the consumer identifier received from theconsumer matches the consumer identifier received from the merchantcomputer, the billing computer transmits a fulfillment approval responseto the merchant computer indicating approval to fulfill the transaction.If the consumer identifiers do not match, the billing computer transmitsa fulfillment approval response that indicates denial to fulfill thetransaction. Assuming the fulfillment approval response is positive, themerchant computer then delivers the product or service to the consumer.

The billing computer can charge the transaction to the consumer billingaccount by transmitting a charge submission to a consumer billingauthority. Alternatively, the billing computer can aggregate two or moretransactions, and charge the aggregated transactions to the consumerbilling account upon the occurrence of a specified event. Aggregationamortizes processing fees across multiple transactions, thereby makingmicrotransactions profitable for merchants. The system and method of thepresent invention thus enable merchants to offer microtransactions toconsumers. In another embodiment, the billing computer can usepredetermined criteria to determine whether each transaction is to becharged directly to the consumer billing account, or aggregated withother transactions and charged to the consumer billing account as anaggregate total.

In an alternative embodiment, the billing computer can obtain apre-authorization from the consumer billing authority that permits thecharging of a predetermined amount to the consumer billing account.Pre-authorization further enables aggregation by ensuring that aconsumer billing account can accommodate the charging of aggregatedtransactions.

In a preferred embodiment, a consumer pre-registers with a billingcomputer and identifies a credit card account and a personalidentification number (PIN) that are to be used to charge transactions.Thereafter, the consumer initiates a transaction by accessing amerchant's web site and placing an order for a product. The merchantcomputer receives the order and sends information relating to the orderto the billing computer, which acts as a third-party billing system. Thebilling computer creates a transaction corresponding to the order andsends a corresponding transaction identifier to the merchant computer.The merchant computer receives the transaction identifier and transmitsa copy to the consumer. The merchant computer then redirects theconsumer to the billing computer's web site to authorize thetransaction.

The consumer authorizes the transaction by sending the transactionidentifier and an authorization code comprising a pre-registered creditcard number, a PIN, and a zip code to the billing computer. The consumeralso sends an anonymous consumer identifier, such as an InternetProtocol (IP) address, to the billing computer. The billing computerverifies the authorization code and determines whether to approve thetransaction. The billing computer then transmits an approval code to themerchant computer, indicating whether the transaction has been approved.The billing computer also redirects the consumer back to the merchantcomputer's web site. The consumer sends a fulfillment request to themerchant computer, along with a copy of the anonymous consumeridentifier. The merchant computer checks to see whether the billingcomputer has approved the transaction, and whether the consumeridentifier sent by the consumer matches the consumer identifier sent bythe billing computer. If the transaction has been approved and theconsumer identifiers match, the merchant computer electronicallytransmits the product to the IP address specified by the consumeridentifier. The merchant computer then sends an acknowledgment to thebilling computer that the product has been delivered. The billingcomputer either submits the transaction to a consumer billing authority,thereby directly charging the transaction to the credit card accountspecified in the consumer's authorization code, or aggregates thetransaction for later billing to the credit card account as part of anaggregate total.

One advantage of the present invention is that it allows consumers toconduct transactions securely by providing billing information to athird-party billing system rather than to merchants.

Another advantage of the present invention is that it allows consumersto conduct transactions anonymously by providing personal information toa third-party billing system rather than to merchants.

Yet another advantage of the present invention is that it allowsconsumers to add security to their billing account by associating a PINcode with it.

Yet another advantage of the present invention is that it allowsmultiple consumers to charge transactions to a billing account, and toallow different restrictions to be set for each consumer on thetransactions that can be charged by that consumer.

A further advantage of the present invention is that it allows consumersto conduct transactions without needing to create or remember a newaccount number.

Yet another advantage of the present invention is that it allowsconsumers and merchants to conduct microtransactions.

A further advantage of the present invention is that it allowstransactions to be aggregated before being charged to a consumer billingaccount.

Another advantage of the present invention is that it allows a billingaccount to accommodate aggregated charges by obtaining pre-authorizationto charge a predetermined amount to the consumer billing account.

The foregoing and other features, aspects, and advantages of the presentinvention will become apparent from the following detailed description,which should be read in conjunction with the accompanying drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

The accompanying drawings, which are incorporated into and form a partof the specification, illustrate preferred embodiments of the presentinvention by way of example, and, together with the description, serveto explain the principles of the invention.

FIG. 1 is a schematic diagram of a prior art e-commerce system.

FIG. 2 is a schematic diagram of an e-commerce system in accordance witha preferred embodiment of the invention.

FIG. 3 illustrates the communications that can occur as part of the stepof initiating a transaction in a preferred embodiment of the method ofthe present invention.

FIG. 4A illustrates the communications that can occur as part of thestep of authorizing a transaction in a preferred embodiment of themethod of the present invention.

FIGS. 4B and 4C depict web pages through which a consumer authorizes atransaction in a preferred implementation of the system and method ofthe present invention.

FIG. 5 illustrates the communications that can occur as part of the stepof approving a transaction in a preferred embodiment of the method ofthe present invention.

FIGS. 6A and 6B illustrate the communications that can occur as part ofthe step of fulfilling a transaction in a preferred embodiment of themethod of the present invention.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

The present invention will now be described with reference to theaccompanying drawings, which are provided as illustrative examples ofpreferred embodiments of the present invention. In describing thepreferred embodiments illustrated in the drawings, specific terminologyis used for the sake of clarity. However, the invention is not intendedto be limited to the specific terms that are selected. Rather, eachspecific term is intended to include all equivalents that operate in asimilar or substantially similar manner to accomplish a similar orsubstantially similar result. Notably, the present invention can beimplemented using software, hardware, or any combination thereof, aswould be apparent to those of skill in the art.

FIG. 2 shows a preferred embodiment of a system that can be used toconduct e-commerce transactions according to the present invention. Aconsumer 204, a merchant computer 208, and a billing computer 218 areall connected to computer network 202, which provides means forbi-directional communication between any two parties. One example of asuitable network is the Internet, which relies on TCP/IP protocols tocommunicate among a plurality of computers. The consumer 204 can connectto the computer network 202 using one of many technologies, such as apersonal computer, a network-enabled television, a personal digitalassistant, a cellular telephone with built-in computer connectivity suchas a microbrowser, or similar technology known to those of skill in theart. Consumer 204 has an associated consumer identifier 206 thatuniquely identifies the consumer while the consumer interacts withcomputer network 202. Consumer identifier 206 should be unique withincomputer network 202, at least from the time that a transaction isinitiated through the time that a transaction is fulfilled.

Additionally, in a preferred embodiment, consumer identifier 206 isindependent from the consumer's billing information that is provided toconsumer billing authority 240. Such an embodiment allows consumer 204to engage in transactions in such a way that merchant computer 208 doesnot receive information that identifies the consumer billing account.

In another preferred embodiment, consumer identifier 206 is anonymous,meaning that it identifies consumer 204 in a way that does not disclosepersonal information about the consumer. An anonymous consumeridentifier contains information that enables merchant computer 208 todeliver a product or service to consumer 204, but does not otherwiseidentify consumer 204. Such an embodiment allows consumer 204 to engagein transactions anonymously.

Examples of preferred consumer identifiers include computer names,Internet Protocol (IP) addresses, browser identifiers, login identifiersalong with domain names, identifiers that identify only the consumer'sconnection to computer network 202, digital certificates, distinguishednames, and smart cards. Other types of consumer identifiers are known tothose of skill in the art. As is conventional, most Internet service ornetwork providers assign an IP address to consumers when they log in tothe network; consequently, the IP address used by a particular consumertypically changes at each log-in.

One or more merchant computers 208 are connected to computer network202. FIG. 2 shows a single merchant computer 208 for illustrativepurposes only. In the embodiment shown in FIG. 2, merchant computer 208includes a network interface 214 for communicating with computer network202, a controller 210 for managing the operation and interaction of themodules within the computer and for executing the methods of theinvention for conducting transactions. As shown in the embodimentdepicted in FIG. 2, merchant computer 208 can also include the followingcomponents: a comparator 212 for comparing values related to theprocessing of transactions such as consumer identifiers; a transactionmemory 216 for storing information about transactions that are inprogress or completed; and a predefined database 211 containingdescriptions of predefined transactions. One skilled in the art willappreciate that merchant computer 208 can also include numerousconventional hardware and software components for providing informationand products to consumers and for conducting transactions over computernetwork 202. Moreover, some or all of the modules shown in FIG. 2 can beimplemented with software, hardware, or both.

A billing computer 218 is configured to communicate with merchantcomputer 208 and consumer 204 through the computer network 202. In theembodiment shown in FIG. 2, billing computer 218 includes a networkinterface 224 for connecting to and communicating with computer network202; a consumer billing authority interface 230 for connecting to andcommunicating with a consumer billing authority 240 over a connection242; and a controller 220 for managing the operation and interaction ofthe modules within the computer and for executing the methods of theinvention for conducting transactions. Connection 242 can include anautomated or semi-automated connection via a computer network ordedicated computer link, or it can include a manual connection wherebycommunication requests are handled manually through human intervention.

As shown in the embodiment depicted in FIG. 2, billing computer 208 canalso include the following components: a comparator 222 for comparingvalues related to the approval of transactions such as consumeridentifiers; an account database 232 for storing account informationsuch as consumer account numbers, consumer billing account identifiers,or authorization codes for consumers that have registered with billingcomputer 218; a PIN database 234 for storing information related toapproving transactions, a predefined database 236 containingdescriptions of predefined transactions; a transaction memory 226 forstoring information about transactions that are in progress orcompleted; and an aggregation memory 228 for storing transactions thatare in the process of being aggregated together into one or more billingevents for submission to the consumer billing authority. One skilled inthe art will appreciate that billing computer 218 can also includenumerous conventional hardware and software components for providinginformation and conducting transactions over computer network 202.Moreover, some or all of the modules shown in FIG. 2 can be implementedwith software, hardware, or both.

As shown in the embodiment depicted in FIG. 2, consumer billingauthority 240 is a system (e.g., a credit card payment processor) thatis external to billing computer 208 and that:

-   -   authorizes the charging of transactions to consumer billing        accounts, as referenced by consumer billing account numbers and        optionally other associated information;    -   charges transactions to consumer billing accounts; and    -   settles transactions charged to consumer billing accounts.        One skilled in the art will appreciate that consumer billing        authority 240 can also include numerous conventional hardware        and software components for providing the above functionality.        Moreover, some or all of the modules shown in FIG. 2 can be        implemented with hardware, software, or both.

The operation of the embodiment of the e-commerce system shown in FIG. 2will now be described with reference to FIGS. 3 through 6. The system isused to conduct transactions between consumer 204, merchant computer208, and billing computer 218, wherein consumer 204 intends to purchasea product or service from merchant computer 208 by charging the value ofthe product or service to a consumer billing account. Billing computer218 will ultimately charge the transaction to the consumer billingaccount, but such a charge can occur after the transaction is complete.Billing computer 218 can also aggregate the transaction with othertransactions and charge the aggregated transactions to the consumerbilling account, as will be discussed below. Significantly, thetransaction is conducted without disclosure of information thatidentifies the consumer billing account to merchant computer 208. Thatis, neither consumer 204 nor billing computer 218 transmits to merchantcomputer 208, and merchant computer 208 does not receive, informationidentifying the consumer billing account.

The overall method of conducting a transaction of the present inventioncan be broken down into four main steps, which are illustrated in FIGS.3 through 6. The four main steps are:

-   -   initiating a transaction (FIG. 3);    -   authorizing the transaction (FIGS. 4A, 4B, and 4C);    -   approving the transaction (FIG. 5); and    -   fulfilling the transaction (FIGS. 6A and 6B).        Each of the four main steps can be further broken down into one        or more sub-steps. Although the preferred embodiments described        herein list particular combinations of sub-steps for each of the        four main steps, the invention is not limited to those        particular combinations of sub-steps. Rather, the invention        includes within its scope the four main steps, and all possible        combinations of the sub-steps that are described herein.

The four main steps, and the corresponding sub-steps that can be (butneed not be) used to carry out each of the four main steps, will now bedescribed.

FIG. 3 illustrates alternatives for the step of initiating atransaction. In one embodiment of the invention, consumer 204 initiatesa transaction by transmitting an order 302 for a product or service tomerchant computer 208. Merchant computer 208 can look up the order 302in a predefined database 211 to retrieve a description of a predefinedtransaction that can contain additional information about the order 302(e.g., price, product code, etc.). Merchant computer 208 then transmitsan order description 206, which contains information relating to theorder, to billing computer 218.

Billing computer 218 then creates a transaction in its transactionmemory 226, and returns to merchant computer 208 a transaction ID 308,which is a transaction identification code that can be used to referencethe transaction again at a later time. Billing computer 218 can alsolook up the order in a predefined database 236, which containsdescriptions of predefined transactions, in order to retrieve additionalinformation about the order. Information retrieved from predefineddatabase 236 can be used in creating the transaction that is stored intransaction memory 226. The transaction information that is stored intransaction memory 226 can contain information regarding the merchantcorresponding to merchant computer 208, the product or service to besold, the price of the transaction, restrictions associated with theproduct or service, and other related information.

After receiving transaction ID 308, merchant computer 208 can storetransaction ID 308, as well as additional information about thetransaction, in transaction memory 216. Finally, merchant computer 208transmits transaction ID 308 to consumer 204.

In an alternative embodiment, consumer 204 initiates a transaction bytransmitting an order 302 for a product or service to merchant computer208. Merchant computer 208 can look up the order in a predefineddatabase 211 to retrieve a description of a predefined transaction thatcan contain additional information about the order 302, such as atransaction ID 308. Merchant computer 208 can then store transaction ID308, as well as additional information about the transaction, intransaction memory 216. Finally, merchant computer 208 transmitstransaction ID 308 to consumer 204.

In an alternative embodiment, consumer 204 initiates a transaction bytransmitting an order 302 for a product or service directly to billingcomputer 218. Billing computer 218 then creates a transaction in itstransaction memory 226. Billing computer 218 can also look up the orderin a predefined database 236, retrieve additional information about theorder, and store the additional information in transaction memory 226.

FIG. 4A illustrates alternatives for the step of authorizing atransaction. In one embodiment of the invention, billing computer 218transmits a transaction description 402 to consumer 204. This step isoptional, as consumer 204 can authorize the transaction corresponding tothe previously placed order without feedback from billing computer 218.

If consumer 204 wishes to authorize the transaction, consumer 204transmits an authorization code 404 to billing computer 218, containingbilling information related to consumer 204. Authorization code 404 canalso comprise authentication information, such as a digital certificate,a password, or a PIN code. Additionally, authorization code 404 cancomprise the transaction ID 308 that corresponds to the transaction tobe authorized, in which case billing computer 218 can use transaction ID308 to look up the referenced transaction in transaction memory 226.

The billing information contained within authorization code 404 shouldidentify, either directly or indirectly, the consumer billing account towhich consumer 204 wishes to charge the transaction, so that billingcomputer 218 can later charge the transaction to that consumer billingaccount through consumer billing authority 240. Accordingly,authorization code 404 can comprise a consumer billing accountidentifier (such as a consumer billing account number), a consumeraccount number that billing computer 218 looks up in account database232 to retrieve a consumer billing account identifier, a digitalcertificate that contains embedded within it a consumer billing accountidentifier or a consumer account number, or a digital certificate thatcontains a reference to an external directory that can be consulted bybilling computer 218 to obtain, either directly or indirectly, a billingaccount identifier.

In a preferred embodiment, authorization code 404 comprises the sameconsumer billing account number (such as a credit card number or a debitcard number) that is submitted to consumer billing authority 240 tocharge the transaction to the corresponding consumer billing account. Inthis way, consumer 204 can use the e-commerce system of the presentinvention to conduct transactions without needing to create or remembera new account number or some other identification number. For example, apre-existing credit card or debit card can be used.

In a preferred embodiment, billing computer 218 uses authenticationinformation contained within authorization code 404 to ensure that theconsumer submitting authorization code 404 is in fact the consumerauthorized to access the identified consumer billing account.Authentication information can comprise data known only to consumer 204,such as a password or PIN. Authentication information can also comprisethe capture of a personal signature, a digital signature, biometricdata, a digital certificate, or other types of authenticationinformation, as known to those of skill in the art. Billing computer 218can validate authentication information provided within authorizationcode 404 by referencing account database 232, PIN database 234, or anexternal directory.

In a preferred embodiment, authorization code 404 comprises a consumerbilling account number and a password. Such an embodiment achieves theeffect of transparently “adding” security to the consumer's billingaccount by permitting the consumer to associate a personal password withthe billing account. As one example, consumer 204 can pre-register withbilling computer 218 by providing a PIN and credit card number that areto be used for future transactions

The authentication information in authorization code 404 need not have aone-to-one correspondence with the underlying consumer billing account.A preferred embodiment of the present invention permits multiple PINs,each of which is associated with a separate consumer, to be associatedwith a single consumer billing account. In this way, transactions can becharged to a single consumer billing account by multiple consumers. Forexample, multiple family members can charge transactions to a singlecredit card. In such an embodiment, billing computer 218 can use theauthentication information to provide separate restrictions fordifferent users of the consumer billing account. Restrictions can bedirected to spending limits, credit limits, product-type limits,service-type limits, merchant-type limits, or merchant limits. Othertypes of restrictions can be determined by those of skill in the art. Asan example, a parent can authorize a child to charge transactions to theparent's consumer billing account by creating a separate PIN for thechild. The parent can then specify restrictions on the child'stransactions, such as a credit limit restriction of $20/month, or a typerestriction on the types of products or services the child is permittedto purchase. The use of multiple PINs or other authentication codes tocontrol transactions that are authorized by multiple users of a billingaccount is a feature of the present invention that can be used with avariety of systems and methods, and is not limited to use within thedisclosed e-commerce system and methods.

In another embodiment of the present invention, consumer 204 caninitiate and authorize a transaction by transmitting an order and anauthorization code 404 to billing computer 218 substantiallysimultaneously. In yet another embodiment, consumer 204 can combinetransmission of the order and transmission of the authorization code 404into one transmission.

In an embodiment in which consumer 204, merchant computer 208, andbilling computer 218 interact via the Internet, an embodiment of theauthorization step can include display of transaction description 402 ona web page 450, as illustrated in FIG. 4B. Consumer 204 can then enteran authorization code comprised of an account number, a PIN, and a zipcode corresponding to the billing address for the consumer billingaccount in input boxes 460, 462, and 464, respectively. Consumer 204 canthen select the Next button 470 to transmit the authorization code tobilling computer 218. Billing computer 218 then verifies theauthorization code and approves the transaction. If billing computer 218approves the transaction, it displays transaction description 402 on aweb page 452, as shown in FIG. 4C, and gives consumer 204 one morechance to either accept or decline the transaction. Consumer 204 cancomplete authorization of the transaction by selecting the Accept button472. Alternatively, consumer 204 can decline or cancel the transactionby selecting the Cancel button 474.

FIG. 5 illustrates alternatives for the step of approving a transaction.In determining whether to approve a transaction, billing computer 218considers the authorization code 404 provided by consumer 204. Inalternative embodiments, billing computer 218 can also consider otherinformation, such as the value of the product or service that consumer204 wishes to purchase, or the balance of the consumer billing accountto which the transaction is to be charged. In an embodiment in whichauthorization code 404 comprises authentication information such as aPIN, billing computer 218 can further consider a spending or creditlimit, or a product or service limit that can be associated with theauthentication information.

In an alternative embodiment, billing computer 218 can transmit anauthorization request 502 to consumer billing authority 240, requestingauthorization to charge the consumer billing account. Authorizationrequest 502 can include a consumer billing account identifiercorresponding to the consumer billing account consumer 204 to which theconsumer wishes to charge the transaction; the price of the product orservice to be purchased; the nature of the product or service to bepurchased; consumer billing account security or authenticationinformation; or other billing information related to consumer 204. Uponconsideration of the authorization request 502, consumer billingauthority 240 transmits an authorization response 504 back to billingcomputer 218 that either approves or denies the authorization request.Billing computer 218 can consider authorization response 504 indetermining whether to approve the transaction. Consumer billingauthority 240 can comprise a conventional computer that authorizescredit card transactions.

After determining whether to approve the transaction, billing computer218 transmits an approval 506 to merchant computer 208, indicatingwhether billing computer 218 has approved the transaction. In oneembodiment, approval 506 comprises the transaction ID 308 correspondingto the transaction being conducted, which allows merchant computer 208to correlate the transaction to the consumer ID (but not the trueidentity of the consumer). Finally, in a preferred embodiment, billingcomputer 218 updates the information regarding the transaction intransaction memory 226.

If billing computer 218 approves the transaction, the transaction isthen fulfilled. FIGS. 6A and 6B illustrate alternatives for the step offulfilling a transaction. In the simplest embodiment, merchant computer208 transmits delivery fulfillment 610 to consumer 204, which comprisesdelivery of the product or service to consumer 204. The product orservice can be delivered to consumer 204 by electronic transmission.

In an alternative embodiment, consumer 204 transmits a fulfillmentrequest 602 to merchant computer 208. Consumer 204 can also transmitconsumer identifier 206 to merchant computer 208; this consumeridentifier can be transmitted separately, or it can be transmitted aspart of fulfillment request 602. Consumer 204 can also transmit consumeridentifier 206 to billing computer 218; this consumer identifier can betransmitted separately, or it can be transmitted as part ofauthorization code 404. Billing computer 218 can then transmit consumeridentifier 206 to merchant computer 208; this consumer identifier can betransmitted separately, or it can be transmitted as part of approval506.

Merchant computer 208 then determines whether to fulfill the fulfillmentrequest 602. In making that determination, merchant computer 208 canconsider any of the information it has received regarding thetransaction, as well as any information about the transaction it hasstored in transaction memory 216. Merchant computer 208 can also usecomparator 212 to compare the consumer identifier 206 transmitted byconsumer 204 to merchant computer 208, and the consumer identifier 206transmitted by consumer 204 to billing computer 218 and forwarded bybilling computer 218 to merchant computer 208. If the two consumeridentifiers match, and merchant computer 208 determines to fulfill thefulfillment request 602, merchant computer 208 then transmits deliveryfulfillment 610 to consumer 204.

In an alternative embodiment, consumer 204 transmits a fulfillmentrequest 602 to merchant computer 208. Consumer 204 can also transmitconsumer identifier 206 to merchant computer 208; this consumeridentifier can be transmitted separately, or it can be transmitted aspart of fulfillment request 602. Consumer 204 can also transmit consumeridentifier 206 to billing computer 218; this consumer identifier can betransmitted separately, or it can be transmitted as part ofauthorization code 404.

Merchant computer 208 then transmits a fulfillment approval request 606to billing computer 218. Merchant computer 208 can also transmitconsumer identifier 206 to billing computer 218; this consumeridentifier can be transmitted separately, or it can be transmitted aspart of fulfillment approval request 606.

Billing computer 218 then determines whether to approve the fulfillmentapproval request 606. In making that determination, billing computer 218can consider any of the information it has received regarding thetransaction, as well as any information about the transaction it hasstored in transaction memory 226. Billing computer 218 can also usecomparator 222 to compare the consumer identifier 206 transmitted byconsumer 204 to billing computer 218, and the consumer identifier 206transmitted by consumer 204 to merchant computer 208 and forwarded bymerchant computer 208 to billing computer 218. If the two consumeridentifiers match, and billing computer 218 determines to approve thefulfillment approval request 606, billing computer 218 transmits afulfillment approval response 608 to merchant computer 208 thatindicates approval to fulfill the transaction. Otherwise, billingcomputer 218 transmits a fulfillment approval response 608 to merchantcomputer 208 that indicates denial to fulfill the transaction. Finally,if fulfillment approval response 608 indicates approval to fulfill thetransaction, merchant computer 208 transmits delivery fulfillment 610 toconsumer 204.

In yet another embodiment, consumer 204 transmits a fulfillment request602 to merchant computer 208. Consumer 204 can also transmit consumeridentifier 206 to merchant computer 208; this consumer identifier can betransmitted separately, or it can be transmitted as part of fulfillmentrequest 602. Consumer 204 can also transmit consumer identifier 206 tobilling computer 218; this consumer identifier can be transmittedseparately, or it can be transmitted as part of authorization code 404.

Merchant computer 208 then transmits a fulfillment approval request 606to billing computer 218. Merchant computer 208 can also transmitconsumer identifier 206 to billing computer 218; this consumeridentifier can be transmitted separately, or it can be transmitted aspart of fulfillment approval request 606.

Billing computer 218 then determines whether to approve the fulfillmentapproval request 606. In making that determination, billing computer 218can consider any of the information it has received regarding thetransaction, as well as any information about the transaction it hasstored in transaction memory 226. If billing computer 218 determines toapprove the fulfillment approval request 606, billing computer 218transmits a fulfillment approval response 608 to merchant computer 208that indicates approval to fulfill the transaction. Otherwise, billingcomputer 218 transmits a fulfillment approval response 608 to merchantcomputer 208 that indicates denial to fulfill the transaction. Billingcomputer 218 can also transmit the consumer identifier 206 that itreceived from consumer 204 to merchant computer 208; this consumeridentifier can be transmitted separately, or it can be transmitted aspart of fulfillment approval response 608.

Merchant computer 208 then determines whether to fulfill the fulfillmentrequest 602. In making that determination, merchant computer 208 canconsider any of the information it has received regarding thetransaction, as well as any information about the transaction it hasstored in transaction memory 216. Merchant computer 208 can alsoconsider fulfillment approval response 608. Merchant computer 208 canalso use comparator 212 to compare the consumer identifier 206transmitted by consumer 204 to merchant computer 208, and the consumeridentifier 206 transmitted by consumer 204 to billing computer 218 andforwarded by billing computer 218 to merchant computer 208. If the twoconsumer identifiers match, and merchant computer 208 determines tofulfill the fulfillment request 602, merchant computer 208 thentransmits delivery fulfillment 610 to consumer 204.

As part of fulfilling the transaction, billing computer 218 can chargethe transaction to the consumer billing account. In one embodiment,billing computer 218 transmits charge submission 614 to consumer billingauthority 240, as shown in FIG. 6B. Consumer billing authority 240 thentransmits charge response 616 to billing computer 218. Charge response616 can indicate the status of the charge, including whether the chargesucceeded or failed.

In another embodiment, charge submission 614 can be conducted inconjunction with authorization request 502, so as to ensure the successof the charge. In such an embodiment, billing computer 218 can store theinformation required to coordinate authorization request 502 and chargesubmission 614 in transaction memory 226.

In an alternative embodiment, merchant computer 208 transmits deliveryacknowledgment 612 to billing computer 218. Delivery acknowledgment 612indicates the status of the delivery of the product or service. Billingcomputer 218 then transmits charge submission 614 to consumer billingauthority 240 only if delivery acknowledgment 612 indicates thatfulfillment delivery 610 to consumer 204 has been completed. Thisembodiment has the advantage of ensuring that the product or service isdelivered to consumer 204 successfully before the transaction is chargedto the consumer billing authority 240.

In an alternative embodiment, the system and methods of the presentinvention are used to conduct multiple transactions between a consumer204 and one or more merchant computers 208. In such an embodiment,billing computer 218 need not charge each individual transaction to theconsumer billing account. Billing computer 218 can instead aggregate twoor more transactions, and charge the aggregated transactions to theconsumer billing account.

More specifically, billing computer 218 can store some completedtransactions in an aggregation memory 228. Note that billing computer218 can receive a delivery acknowledgment for all, some, or none of thecompleted transactions. Billing computer 218 can then aggregate thecompleted transactions into a single billing event for submission toconsumer billing authority 240. In other words, billing computer 218 canaggregate the completed transactions and submit them to consumer billingauthority 240 via one charge submission 614. In that way, the aggregatedtransactions are charged to the consumer billing account as one billingevent. In an alternative embodiment, billing computer 218 can aggregatecompleted transactions into more than one billing event for submissionto consumer billing authority 240.

Billing computer 218 can charge aggregated transactions to a consumerbilling account upon the occurrence of a specified event. In oneembodiment, billing computer 218 charges the aggregated transactionswhen the number of aggregated transactions exceeds a predeterminednumber threshold. In another embodiment, billing computer 218 chargesthe aggregated transactions when a predetermined period of time expires.In yet another embodiment, billing computer 218 charges the aggregatedtransactions when the sum of the aggregated transactions (i.e., the sumtotal of the amounts of the aggregated transactions) exceeds apredetermined amount threshold. Other suitable triggering events forsubmitting aggregated transactions to consumer billing authority 240 canbe determined by those of skill in the art. The triggering event ispreferably chosen such that it is profitable for billing computer 218 tocharge the aggregated transactions to the consumer billing account, inlight of the processing fees that are charged by consumer billingauthority 240 and other payment processing firms and financialinstitutions.

In an alternative embodiment, billing computer 218 can use predeterminedcriteria to determine whether each transaction is to be charged directlyto the consumer billing account, or aggregated with other transactionsand charged to the consumer billing account as an aggregate total. Inone embodiment, the predetermined criteria comprises a pass-throughthreshold amount. In such an embodiment, transactions above thepass-through threshold amount are charged to the consumer billingaccount individually, whereas transactions below the pass-throughthreshold amount are aggregated and charged to the consumer billingaccount as an aggregate total. For example, in an embodiment in whichthe pass-through threshold amount is set to $8, a $20 charge incurredfor downloading a software program would be charged to the consumerbilling account directly, while a $0.25 charge incurred for downloadinga picture would be aggregated with other microtransactions and submittedas part of an aggregate charge at a later time. In another embodiment,the predetermined criteria for determining whether to aggregate atransaction comprises the type of the transaction. Other suitablecriteria for determining whether to aggregate a transaction can bedetermined by those of skill in the art. Suitable triggering events forcharging the aggregated transactions to the consumer billing account canalso be determined by those of skill in the art.

In an alternative embodiment, billing computer 218 can obtain apre-authorization from the consumer billing authority that permitscharging a predetermined amount to the consumer billing account. Such apre-authorization can be used to ensure that the consumer billingaccount can accommodate the charging of aggregated transactions. Billingcomputer 218 can obtain a pre-authorization by transmitting anauthorization request 502 to consumer billing authority 240, andreceiving an authorization response 504 in response.

In one embodiment, billing computer 218 obtains pre-authorization aspart of the approval step of conducting a transaction. In alternativeembodiments, billing computer 218 can obtain pre-authorization when theconsumer registers with the billing computer, when a predeterminedperiod of time passes after the previous pre-authorization, or when thesum of a number of aggregated transactions exceeds a predeterminedamount. Other suitable triggering events for obtaining apre-authorization can be determined by those of skill in the art.

Aggregation and pre-authorization, used either independently or inconjunction, are features of the present invention that can be used witha variety of systems and methods, and are not limited to use within thedisclosed e-commerce system and methods.

Although the system and methods of the present invention have beendescribed from an overall perspective, the invention is not directedsolely to the overall system and the overall methods. Rather, theinvention includes within its scope the independent merchant computerand billing computer portions of the system, as well as thecorresponding portions of the methods that are executed at the merchantcomputer and at the billing computer.

Moreover, although the invention has been particularly described byreference to specific embodiments, it should be readily apparent tothose of ordinary skill in the art that various changes andmodifications can be made in form and details without departing from thespirit and scope of the invention. The appended claims are intended tocover such changes and modifications, so as to afford broad protectionto the invention and its equivalents.

The steps of the method claims need not be practiced in the specificorder listed, and such ordering should not be interpreted as limitingthe scope of the invention.

1. A method of conducting a transaction between a consumer, a merchantcomputer, and a billing computer connected together over a computernetwork, wherein the consumer purchases a product or service from themerchant computer by charging the value of the product or service to aconsumer billing account, the method comprising the steps of: (1)initiating the transaction for the product or service; (2) the consumerauthorizing the transaction by transmitting an authorization code to thebilling computer; (3) the billing computer determining whether toapprove the transaction by considering the authorization code; and (4)fulfilling the transaction if the billing computer approves thetransaction; wherein the merchant computer does not receive informationidentifying the consumer billing account.
 2. The method of claim 1,wherein step (1) comprises the steps of: (a) transmitting from theconsumer to the merchant computer an order for the product or service;(b) transmitting from the merchant computer to the billing computerinformation relating to the order; (c) transmitting from the billingcomputer to the merchant computer a transaction identification code; and(d) transmitting from the merchant computer to the consumer thetransaction identification code.
 3. The method of claim 1, wherein step(1) comprises the steps of: (a) transmitting from the consumer to themerchant an order for the product or service; and (b) transmitting fromthe merchant computer to the consumer a transaction identification code.4. The method of claim 1, wherein step (1) comprises the step oftransmitting from the consumer to the billing computer an order for theproduct or service.
 5. The method of claim 4, wherein steps (1) and (2)are combined into one transmission.
 6. The method of claim 1, furthercomprising, prior to step (2), the step of transmitting from the billingcomputer to the consumer a description of the transaction.
 7. The methodof claim 1, wherein step (3) comprises the steps of: (a) transmitting anauthorization request to a consumer billing authority; and (b) receivingan authorization response from the consumer billing authority.
 8. Themethod of claim 1, therein the authorization code comprises a billingaccount identifier.
 9. The method of claim 8, wherein the authorizationcode further comprises a PIN.
 10. The method of claim 9, wherein: thePIN is associated with a predetermined restriction for the consumer; andwherein step (3) includes the step of considering the predeterminedrestriction.
 11. The method of claim 1, wherein step (4) comprises thestep of delivering the product or service to the consumer.
 12. Themethod of claim 11, wherein step (4) further comprises the step oftransmitting from the merchant computer to the billing computer anacknowledgment of the delivery of the product or service indicating thestatus of the delivery.
 13. The method of claim 12, further comprisingthe step of charging the transaction to the consumer billing accountonly if the delivery acknowledgment indicates that the delivery of theproduct or service was successful.
 14. The method of claim 1, whereinstep (4) comprises the steps of: (a) transmitting from the consumer tothe billing computer a first consumer identifier; (b) transmitting fromthe billing computer to the merchant computer the first consumeridentifier; (c) transmitting from the consumer to the merchant computeran order fulfillment request and a second consumer identifier; (d)comparing the first consumer identifier and the second consumeridentifier; and (e) delivering the product or service to the consumer ifthe first consumer identifier matches the second consumer identifier.15. The method of claim 1, wherein step (4) comprises the steps of: (a)transmitting from the consumer to the billing computer a first consumeridentifier; (b) transmitting from the consumer to the merchant computeran order fulfillment request and a second consumer identifier; (c)transmitting from the merchant computer to the billing computer afulfillment approval request and the second consumer identifier; (d)comparing the first consumer identifier and the second consumeridentifier; (e) if the first consumer identifier matches the secondconsumer identifier, transmitting from the billing computer to themerchant computer a fulfillment approval response indicating approval tofulfill the transaction, and otherwise transmitting a fulfillmentapproval response indicating denial to fulfill the transaction; and (f)delivering the product or service to the consumer if the fulfillmentapproval response indicates approval to fulfill the transaction.
 16. Themethod of claim 14, wherein the first consumer identifier and the secondconsumer identifier identify only the consumer's connection to thecomputer network.
 17. The method of claim 14, wherein the first consumeridentifier and the second consumer identifier comprise a digitalcertificate.
 18. A method of conducting a transaction between aconsumer, a merchant computer, and a billing computer connected togetherover a computer network, wherein the consumer purchases a product orservice from the merchant computer by charging the value of the productor service to a consumer billing account, the method comprising thesteps of: (1) transmitting from the consumer to the merchant computer anorder for the product or service; (2) transmitting from the merchantcomputer to the billing computer information relating to the order; (3)transmitting from the billing computer to the merchant computer atransaction identification code; (4) transmitting from the merchantcomputer to the consumer the transaction identification code; (5)transmitting from the billing computer to the consumer a description ofthe transaction; (6) transmitting from the consumer to the billingcomputer an authorization code for the transaction comprising a billingaccount identifier and a first consumer identifier; (7) the billingcomputer determining whether to approve the transaction by consideringthe authorization code; (8) transmitting from the billing computer tothe merchant computer the first consumer identifier; (9) transmittingfrom the consumer to the merchant computer an order fulfillment requestand a second consumer identifier; (10) comparing the first consumeridentifier and the second consumer identifier; and (11) delivering theproduct from the merchant computer to the consumer if the billingcomputer approves the transaction and the first consumer identifiermatches the second consumer identifier; and wherein the merchantcomputer does not receive information identifying the consumer billingaccount.
 19. A method of conducting a transaction between a consumer, amerchant computer, and a billing computer connected together over acomputer network, wherein the consumer purchases a product or servicefrom the merchant computer by charging the value of the product orservice to a consumer billing account, the method comprising the stepsof: (1) transmitting from the consumer to the merchant computer an orderfor the product or service; (2) transmitting from the merchant computerto the billing computer information relating to the order; (3)transmitting from the billing computer to the merchant computer atransaction identification code; (4) transmitting from the merchantcomputer to the consumer the transaction identification code; (5)transmitting from the billing computer to the consumer a description ofthe transaction; (6) transmitting from the consumer to the billingcomputer an authorization code for the transaction comprising a billingaccount identifier and a first consumer identifier; (7) the billingcomputer determining whether to approve the transaction by consideringthe authorization code; (8) transmitting from the consumer to themerchant computer an order fulfillment request and a second consumeridentifier; (9) transmitting from the merchant computer to the billingcomputer a fulfillment approval request and the second consumeridentifier; (10) comparing the first consumer identifier and the secondconsumer identifier; (11) transmitting from the billing computer to themerchant computer a fulfillment approval response indicating approval tofulfill the transaction if the first consumer identifier matches thesecond consumer identifier, and denial to fulfill the transactionotherwise; and (12) delivering the product or service to the consumer ifthe billing computer approves the transaction and the fulfillmentapproval response indicates approval to fulfill the transaction; andwherein the merchant computer does not receive information identifyingthe consumer billing account.
 20. A method of conducting a multiplicityof transactions between a consumer, at least one merchant computer, anda billing computer connected together over a computer network, whereineach transaction is for a product or service that the consumer purchasesfrom one of the at least one merchant computer, the method comprisingthe step of conducting each transaction according to the method of claim19. 21.-40. (canceled)
 41. A method of conducting a transaction at abilling computer connected to a computer network, wherein a consumerpurchases a product or service from a merchant computer by charging thevalue of the product or service to a consumer billing account, themethod comprising the steps of: (1) initiating the transaction for theproduct or service; (2) receiving an authorization code from theconsumer indicating authorization to conduct the transaction; (3)determining whether to approve the transaction by considering theauthorization code; (4) transmitting approval to conduct the transactionto the merchant computer if the transaction is approved; (5) fulfillingthe transaction if the transaction is approved; and wherein the billingcomputer does not transmit information identifying the consumer billingaccount to the merchant computer.
 42. The method of claim 41, whereinstep (1) comprises the steps of: (a) receiving from the merchantcomputer information relating to an order for the product or serviceplaced by the consumer; and (b) transmitting to the merchant computer atransaction identification code.
 43. The method of claim 41, whereinstep (1) comprises the step of receiving an order for the product orservice from the consumer.
 44. The method of claim 43, wherein steps (1)and (2) occur substantially simultaneously.
 45. The method of claim 41,further comprising, prior to step (2), the step of transmitting to theconsumer a description of the transaction.
 46. The method of claim 41,wherein step (3) comprises the steps of: (a) transmitting anauthorization request to the consumer billing authority; and (b)receiving an authorization response from the consumer billing authority.47. The method of claim 41, wherein the authorization code comprises abilling account identifier.
 48. The method of claim 47, wherein theauthorization code further comprises a PIN.
 49. The method of claim 48,wherein: the PIN is associated with a predetermined restriction for theconsumer; and the step of determining whether to approve the transactionfurther includes considering the predetermined restriction.
 50. Themethod of claim 41, wherein step (5) comprises the step of receivingfrom the merchant computer an acknowledgment that the merchant computerdelivered the product or service to the consumer and indicating thestatus of the delivery.
 51. The method of claim 50, further comprisingthe step of charging the transaction to the consumer billing accountonly if the delivery acknowledgment indicates that the delivery of theproduct or service was successful.
 52. The method of claim 41, whereinstep (5) comprises the steps of: (a) receiving a consumer identifierfrom the consumer; and (b) transmitting the consumer identifier to themerchant computer.
 53. The method of claim 41, wherein step (5)comprises the steps of: (a) receiving from the consumer a first consumeridentifier; (b) receiving from the merchant computer a fulfillmentapproval request and a second consumer identifier; (c) comparing thefirst consumer identifier and the second consumer identifier; and (d) ifthe first consumer identifier matches the second consumer identifier,transmitting to the merchant computer a fulfillment approval responseindicating approval to fulfill the transaction, and otherwisetransmitting a fulfillment approval response indicating denial tofulfill the transaction.
 54. (canceled)
 55. A method of conducting atransaction at a billing computer connected to a computer network,wherein a consumer purchases a product or service from a merchantcomputer by charging the value of the product or service to a consumerbilling account, the method comprising the steps of: (1) receiving fromthe merchant computer information relating to an order for the productor service placed by the consumer; (2) transmitting to the merchantcomputer a transaction identification code; (3) transmitting to theconsumer a description of the transaction; (4) receiving from theconsumer an authorization code for the transaction comprising a billingaccount identifier and a consumer identifier; (5) determining whether toapprove the transaction by considering the authorization code; (6)transmitting approval to conduct the transaction to the merchantcomputer if the transaction is approved; (7) transmitting to themerchant computer the consumer identifier; and wherein the billingcomputer does not transmit information identifying the consumer billingaccount to the merchant computer.
 56. A method of conducting atransaction at a billing computer connected to a computer network,wherein a consumer purchases a product or service from a merchantcomputer by charging the value of the product or service to a consumerbilling account, the method comprising the steps of: (1) receiving fromthe merchant computer information relating to an order for the productor service placed by the consumer; (2) transmitting to the merchantcomputer a transaction identification code; (3) transmitting to theconsumer a description of the transaction; (4) receiving from theconsumer an authorization code for the transaction comprising a billingaccount identifier and a first consumer identifier; (5) determiningwhether to approve the transaction by considering the authorizationcode; (6) transmitting approval to conduct the transaction to themerchant computer if the transaction is approved; (7) receiving from themerchant computer a fulfillment approval request and a second consumeridentifier; (8) comparing the first consumer identifier and the secondconsumer identifier; (9) transmitting to the merchant computer afulfillment approval response indicating approval to fulfill thetransaction if the first consumer identifier matches the second consumeridentifier, and denial to fulfill the transaction otherwise; and whereinthe billing computer does not transmit information identifying theconsumer billing account to the merchant computer. 57.-67. (canceled)68. The method of claim 15, wherein the first consumer identifier andthe second consumer identifier identify only the consumer's connectionto the computer network.
 69. The method of claim 15, wherein the firstconsumer identifier and the second consumer identifier comprise adigital certificate.
 70. A method of conducting a multiplicity oftransactions between a consumer, at least one merchant computer, and abilling computer connected together over a computer network, whereineach transaction is for a product or service that the consumer purchasesfrom one of the at least one merchant computer, the method comprisingthe step of conducting each transaction according to the method of claim18.